LEASES

12 Months Ended

Dec. 31, 2021

The Company leases office space throughout the United States under operating and short-term lease agreements. These lease agreements have terms not exceeding 11 years and some contain multi-year renewal options or early termination options that are not considered reasonably certain of exercise except as discussed below. The Company also leases equipment under immaterial finance lease agreements.

Components of lease costs for the years ended the December 31, 2021, 2020, and 2019, are as follows (in millions):


	Year Ended December 31,
	2021		2020		2019
Operating lease cost	$	12	$	34	$	12
Variable lease cost	1		—		1
Short-term lease cost	—		1		2
Sublease income	(1)		—		(1)
Net lease cost	$	12	$	35	$	14

The following table present supplemental lease information (in millions):


December 31,	2021		2020		2019
Cash paid for amounts included in the measurement of operating lease liabilities	$	(10)	$	(13)	$	(11)
Right-of-use assets obtained in exchange for new or acquired lease liabilities	$	—	$	40	$	58

There were no other material lease modifications in the year ended December 31, 2021.

For the year ended December 31, 2020, terminations of certain operating leases resulted in the reduction of right-of-use assets and lease liabilities of approximately $28 million. Of this reduction in operating lease liabilities and right-of-use assets, $28 million is attributable to the Company exercising an option to early terminate the Company’s lease in San Francisco. As the Company does not anticipate returning to the San Francisco space, the Company accelerated amortization of the right-of-use asset by $13 million for the one year term remaining after exercising the early termination option. In exercising the Company’s early termination option, the Company incurred $5 million in early termination fees for the year ended December 31, 2020. In

January 2021, the Company terminated the San Francisco lease prior to the anticipated termination date of September 30, 2021, which resulted in a $5 million gain recognized for the year ended December 31, 2021. See “Note 20 — Restructuring” for further discussion. There were no other material lease modifications for the year ended December 31, 2020.

The weighted average lease term and the weighted average discount rate are as follows:


December 31,	2021		2020
Weighted average remaining lease term for operating leases (in years)	7.6		6.5
Weighted average discount rate for operating leases	9.8	%	9.1	%

Maturity of operating lease liabilities as of December 31, 2021 are as follows (in millions):


2022	$	8
2023	8
2024	9
2025	8
2026	7
Thereafter	27
Total undiscounted future cash flows	$	67
Less: Imputed interest	21
Total lease liabilities	$	46